Nypro Inc. is expanding in China with the purchase of two injection molding operations from electronics manufacturer Jabil Circuit Inc. of St. Petersburg, Fla.
Nypro has signed a letter of intent to buy a plant in Danshui and the molding portion of an operation in Panyu, the Clinton, Mass., firm announced April 17. The deal includes 80 injection presses with clamping forces up to 250 tons, Nypro President Gordon Lankton said in a telephone interview.
The operations boost Nypro's already considerable stake in China. It is building a new plant in Suzhou and already runs molding and assembly plants in Shenzhen and Tianjin. Nypro also runs a mold-making plant in Hong Kong.
Jabil has owned the plants since September 1999 when it purchased them from GET Manufacturing Inc. of Mountain View, Calif. Jabil will continue to make electronics parts such as circuit boards at the sites after Nypro takes over the molding.
Nypro will continue to supply Jabil's needs from the purchased plants but also will pursue other business for the plants in Danshui and Panyu, according to Lankton. The Danshui plant has 112,000 square feet and the molding operation in Panyu is a separate, 66,000-square-foot building.
Jabil, a contract manufacturer, claims to be the fifth-largest electronics manufacturing service company in the world, with annual sales of about $4.5 billion. Supply-chain management is key to companies like Jabil, which typically outsource 70 percent of their components, Lankton said.
Mike Ward, Jabil vice president of supply chain management, said in a news release that his firm intends to use "best in class" resources in outsourcing components production.
Nypro operates 24 injection molding plants in North America, Latin America, Europe and Asia. The employee-owned company reported annual sales of $610.2 million for the fiscal year ended July 1, including $478.1 million from its North American operations. Those sales ranked the company eighth in Plastics News' 2001 survey of North American injection molders.